Niu Technologies Reports Second Quarter 2024 Financial Results

Niu Technologies Reports Second Quarter 2024 Financial Results

Niu Technologies (NASDAQ:NIU), a global leader in smart urban mobility solutions, has announced its unaudited financial results for the second quarter ending June 30, 2024.

Second Quarter 2024 Financial Highlights

Interpretation:

Despite a 13.5% increase in revenues year-over-year, Niu Technologies reported a net loss of RMB 24.9 million, significantly higher than the net loss of RMB 1.9 million in the same period last year. The gross margin declining to 17.0% from 23.1% indicates a potential reduction in profitability. This aligns with a higher cost of revenues and changes in product mix.

Segment Revenue Breakdown

Interpretation:

The increase in sales across both Chinese and international markets, particularly driven by a rise in e-scooter sales volume, has partially offset lower average revenue per e-scooter. However, the gross margin pressure suggests that higher sales volumes may not be translating effectively to higher profits.

Operational Highlights

Comments from Company's Officers

Dr. Yan Li, Chief Executive Officer, commented on the performance, stating that new product introductions captured over 50% of the expanding domestic sales volume, validating their strategic approach. Dr. Li also emphasized strategic alliances with premier retail brands like Best Buy for deeper market penetration in the US.

Dividends and Share Repurchase Program

No information on announced dividends or share repurchase program was provided in the earnings release.

Forward Guidance

NIU Technologies expects revenues for the third quarter of 2024 to be in the range of RMB 1,298 million to RMB 1,483 million, representing a year-over-year increase of 40% to 60%.

Stock Price Movement

Following the earnings release, the company's stock experienced a 3.77% increase.

This earnings summary offers a detailed view of Niu Technologies' financial and operational performance, highlighting both strengths in sales growth and challenges in profitability and net losses.